Business Vs Profession - Meaning, Features, Examples
We know the fact that human activities are primarily categorized into two types-
- Economic activities
- Non-economic activities
Economic activities are engaged to earn a livelihood. These activities are carried out in three sub-categories-
In this blog, we will discuss the differences and meanings of business and profession. Before we head to the in-depth guide, we will give you an overview of business vs. profession. Business deals with rendering goods and services with the motive to earn profit.
On the other hand, a profession denotes a paid occupation that demands a person to be formally qualified, expert and acquainted in a certain field to be called a professional. Dig into this blog to know about their differences as well as features of business and profession!
What is Business?
Business is directed to an enterprising organization or entity that executes professional activities. Businesses can vary from commercial, industrial, or others. Profit in business is not vital on a monetary basis, it can also benefit in any form comprising business activity.
For example, Flipkart and Apple are some of the biggest businesses in the market. There are various types of businesses mentioned below-
- Sole Proprietorship
- Limited Liability Company (LLC)
- Limited Partnership (LP)
- Cooperative (Co-op)
- General Partnership
- Nonprofit Organization
Now that you know the meaning of business, further, we will discuss the salient features of business.
Features of business
- An Economic Activity- Business is considered to be an economic activity that involves the sale of goods and services to earn profits.
- Uncertainty of Return- The chance of earning profit or loss is highly uncertain and can’t be forecasted by the entrepreneur beforehand.
- Sale of Goods Satisfaction of Human Needs- One of the main roles of business is to deliver goods and services to consumers. The goods manufactured for self-consumption are not business. There should be an exchange of services against the money earned between buyer and seller.
- Dealings With Goods and Services regularly- Every *business rendering goods or services must deal regularly. Selling for one time is not regarded as a business activity. *
- Profit Earning- A business can't survive for long without making a profit. The core existence of a business is to maximize its profits and minimize costs.
- Manufacturing or Procurement of Services and Goods- Before delivering goods to the customer for consumption, they must be procured or manufactured by businesses. Business entity turns the raw material into finished goods.
What is a Profession?
The profession is an economic activity that demands special skill sets and knowledge of individuals to earn their livelihood. The people involved in the profession are called professionals.
They need to abide by the rules and regulations laid down by the professional bodies. For instance, doctors in the medical profession had to follow the code of conduct that was brought up by the Medical Council of India.
Now that you know the meaning of profession, further, we will discuss the salient features of profession.
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Features of Profession
Remuneration- The money earned by professionals for rendering the services is known as a fee.
Professional body- The professional body regulates the professionals by laying down the code of conduct that needs to be followed. For example, ICAI.
Special knowledge and skill- Professionals should be well acquainted with the skill set for the desired profession from universities, colleges, and specialized institutes.
Service motive- The main capital of a profession is to render services. Professionals should not be exploited and paid accordingly for their knowledge or expertise.
Freedom of work- The individuals involved in the professional fieldwork on their own for the business get paid for the same.
Difference between Business vs. profession
|Basis for difference||Business||Profession|
|Meaning||Business is directed to an enterprising organization or entity that executes commercial, industrial, or professional activities. It can be a for-profit or non-profit entity.||The Profession meaning is an economic activity that demands special skill sets and knowledge of individuals to earn their livelihood. The people involved in the profession are called professionals.|
|Qualification||No minimum qualification||Specialized skill set of study is mandatory|
|Transfer of Interest||Possible||Not possible|
|Basic Objective||Earning profit||Providing assistance|
|Risk Factor||Always present||Not always present|
In this blog, we have walked you through the key differences between business and profession. Now that you're well acquainted with their meaning and examples, you can differentiate distinctly without considering the same with our detailed meaning of profession and business.
The critical distinction lies in their motive. Business is set up for profit-making, on the other hand, the profession's purpose is to assist. Subsequently, capital investment is required for the business in the initial stage itself, wherein skills and competency are the core capital for a profession. We’ve also mentioned the example of business and profession.
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